Planning

PLANNING...

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CONTENTS

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Palak Sood Roll No. : 67 References: Principles of Management 

Koontz H. and O’Donnel

Principles of Management 

Prasad L.M.

The Principles of Management 

Rustom S. Davar

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PLANNING

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ROLE OF PLANNING

CHARACTERTICS

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ELEMENTS

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TYPES OF GOALS

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CHARACTERSTIS OF A GOOD PLAN

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STEPS IN PLANNING

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Palak Sood Roll No. : 67 References: Principles of Management 

Koontz H. and O’Donnel

Principles of Management 

Prasad L.M.

The Principles of Management 

Rustom S. Davar

Planning

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Swathi Velisetty Roll No. : 113 References: Principles of Management 

Koontz H. and O’Donnel

The Practice of Management 

Drucker P.F.

The Fundamentals of Top Management 

Ralph C. Davis

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NEED FOR PLANNING

BENEFITS

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BENEFITS

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LIMITATIONS

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LIMITATIONS

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TYPES OF PLANNING

TYPES OF PLANNING

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TYPES OF PLANNING

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CLASSIFICATION OF PLANS

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LEVELS OF PLANNING

LEVELS OF PLANNING

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FIVE LEVELS

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Swathi Velisetty Roll No. : 113 References: Principles of Management 

Koontz H. and O’Donnel

The Practice of Management 

Drucker P.F.

The Fundamentals of Top Management 

Ralph C. Davis

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Siddhi Shah Roll No. : 101 References: Principles of Management 

Koontz H. and O’Donnel

Principles of Management 

Stoner & Freeman

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CORPORATE PLANNING

CORPORATE PLANNING… Provides a basis of control Accomplish goals with efficiency and certainty Anticipate technology changes Helps to minimize costs Helps to acquire a competitive edge Planning

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CORPORATE OBJECTIVES Corporate Objectives 

Overall objective is financial

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‘Long Term’ and ‘Short Term’

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Most generally, they answer the questions:  Where do we want to be ?  When do we expect to be there?

Forecasting 

Short-term forecasting

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Long-term forecasting Planning

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COMPONENTS OF CORPORATE PLANNING What is a Corporate Plan? Quite Similar to a Marketing Plan  More ‘contextual’ in nature than other plans  Includes plans for disposition of other internal resources of the organization 

Main components of a Corporate Plan Market Position vis-à-vis Customer’s perception  The position the company ‘plans’ to be in  4Ps are the vehicle to reach the destination 

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SHORT TERM FORECASTING nAbout Short Term Forecasting •A schedule covering the plan •Overall - Sales & financial growth oriented •Has a limited horizon & demonstrates continuity nSteps / Techniques •Eye-Balling (Data, Charts & Reports) •Relies on judgment and experience of the manager/leader

•Exponential Smoothing •Produces data for each period using mathematical tools

LONG TERM FORECASTING nAbout Long Term Forecasting •A more qualitative plan •Focus on Strategic aspects (not tactical ones) •Has a broad horizon & focus on long term growth

nSteps / Techniques •Identify the important variables •Brainstorm to find the possible outcomes •Link these together in a series of alternative scenarios •Refine these scenarios

CORPORATE MISSION nAbout Corporate Mission •Provides context for Corporate objectives •Defines exactly what an organization is & what it does •Not too wide (meaningless) nor too narrow (lack development)

nKey Characteristics •Customer groups to be served •Customer needs to be met

CORPORATE VISION nAbout Corporate Vision •Most crucial aspect to long term success •Vital for top leadership to develop intricately •Equally important to create a sense of mission

nKey aspects •Powerful and relevant •Inspiring and exciting •Focused and forward-moving

Siddhi Shah Roll No. : 101 References: Principles of Management 

Koontz H. and O’Donnel

Principles of Management 

Stoner & Freeman

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Mayank Sanghai Roll No. : 87 References: Principles of Management 

Koontz H. and O’Donnel

The fundamentals of top management 

Ralph C. Davis

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LONG RANGE PLANNING

LONG RANGE PLANNING

AREAS OF LONG RANGE PLANNING

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FORECASTING AND BUDGETING

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PROACTIVE MANAGEMENT

UNCERTAINTY

SCENARIO PLANNING

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Mayank Sanghai Roll No. : 87 References: Principles of Management 

Koontz H. and O’Donnel

The fundamentals of top management 

Ralph C. Davis

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Shreyash Shah Roll No. : 93 References: www.mindtools.com www.accel-team.com Planning –A Global perspective 

Weihrich & Koontz

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DECISION MAKING

DECISION MAKING MODEL Frame Decide Communicate Implement Evaluate Planning

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MULTIVOTING Description When to Use Keeping the End in Mind • Option 1 • • • •

Option Option Option Option

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GUIDELINES FOR CONDUCTING THE MULTIVOTING ACTIVITY 1. Brainstorm a list of options. 3. Review the list from the Brainstorming activity. 5. Participants vote for the ideas that are worthy of further discussion. 7. Identify items for next round of voting.

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GUIDELINES FOR CONDUCTING 5. Vote again. 7. Repeat steps 4 and 5. 9. Discuss remaining ideas. 11. Proceed with appropriate actions.

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PARETO ANALYSIS A formal technique for finding the changes that will give the biggest benefits Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job Particularly useful where many possible courses of action Planning

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PARETO ANALYSIS The 80/20 rule can be applied to almost anything: 80% of customer complaints arise from 20% of your products or services.  80% of delays in schedule arise from 20% of the possible causes of the delays.  20% of your products or services account for 80% of your profit.  20% of your sales-force produces 80% of your company revenues.  20% of a systems defects cause 80% of its problems. 

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THE PROCEDURE…PARETO ANALYSIS Seven steps to identifying the important causes using Pareto Analysis : 2. Form a table listing the causes and their frequency as a percentage. 3. Arrange the rows in the decreasing order of importance of the causes, i.e. the most important cause first. 4. Add a cumulative percentage column to the table. Planning

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THE PROCEDURE…PARETO ANALYSIS 4. Plot with causes on x-axis and cumulative percentage on y-axis. 5. Join the above points to form a curve. 6. Plot (on the same graph) a bar graph with causes on x-axis and percent frequency on y-axis. 7. Draw a line at 80% on y-axis parallel to x-axis. Then drop the line at the point of intersection with the curve on x-axis. This point on the x-axis separates the important causes on the left and less important causes on the right. Planning

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PARETO ANALYSIS…AN EXAMPLE

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PAIRED COMPARISON ANALYSIS Paired Comparison Analysis helps you to work out the importance of a number of options relative to each other

Helps you to set priorities where there are conflicting demands on your resources

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PAIRED COMPARISON ANALYSIS Follow these steps to use the technique 

List the options you will compare

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For each comparison, you will decide which of the two options is most important

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Assign a score to show how much more important it is 0 (no difference) to 3 (major difference)

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Consolidate the results Planning

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PAIRED COMPARISON ANALYSIS…AN EXAMPLE

A = 3 (37.5%) B = 1 (12.5%) C = 4 (50%) D=0

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GRID ANALYSIS Also known as Decision Matrix analysis, Pugh Matrix analysis or MAUT which stands for Multi-Attribute Utility Theory Most effective where you have a number of good alternatives and many factors to take into account

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GRID ANALYSIS To use the tool, lay out your options as rows on a table Set up the columns to show your factors Allocate weights to show the importance of each of these factors Score each choice for each factor using numbers from 0 (poor) to 3 (very good) Multiply each score by the weight of the factor, to show its contribution to the overall selection Finally add up the total scores for each option. Select the highest scoring option Planning

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GRID ANALYSIS…AN EXAMPLE

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DECISION TREE ANALYSIS Tool for helping to choose between several courses of action Provides a highly effective structure within which you can lay out options and investigate the possible outcomes of choosing those options Forms a balanced picture of the risks and rewards associated with each possible course of action Planning

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DECISION TREE ANALYSIS Assign a cash value or score to each possible outcome Estimate the probability of each outcome Select the most profitable outcome

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FORCE FIELD ANALYSIS Looks at all the forces for and against a decision Method of weighing pros and cons Helps you to plan to strengthen the forces supporting a decision, and reduce the impact of opposition to it.

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COST/BENEFIT ANALYSIS Technique for deciding whether to make a change Add up the value of the benefits of a course of action, and subtract the costs associated with it Takes into consideration the effect of time by calculating the payback period

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COST/BENEFIT ANALYSIS Two possible approaches  Consider only financial costs and benefits  put a financial value on intangible costs and benefits  Example: Tree worth 5000 for wood or 100000 for its environmental value  This inevitably brings an element of subjectivity

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Shreyash Shah Roll No. : 93 References: www.mindtools.com www.accel-team.com Planning –A Global perspective 

Weihrich & Koontz

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Kairav Parikh Roll No. : 70 References: Principles of Management 

Koontz and O’Donnel

Principles of Management 

Prasad L.M.

The Principles of Management 

Rustom S. Davar

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CREATIVE PROBLEM SOLVING

CREATIVE PROBLEM SOLVING

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STAGES IN CREATIVE PROBLEM SOLVING

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BRAINSTORMING

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BRAINSTORMING

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PARADIGMS

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Kairav Parikh Roll No. : 70 References: Principles of Management 

Koontz and O’Donnel

Principles of Management 

Prasad L.M.

The Principles of Management 

Rustom S. Davar

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